Following is a schedule of Commission meetings, which will be conducted under provisions of the Government in the Sunshine Act. Meetings will be scheduled according to the requirements of agenda items under consideration.
Open meetings will be held in the Auditorium, Room L-002 at the Commission's headquarters building, 100 F Street, N.E., Washington, D.C. Visitors are welcome at all open meetings, insofar as space is available. Persons wishing to photograph or videotape Commission meetings must obtain permission in advance from the Secretary of the Commission. Persons wishing to tape record a Commission meeting should notify the Secretary's office 48 hours in advance of the meeting.
Any member of the public who requires auxiliary aids such as a sign language interpreter or material on tape to attend a public meeting should contact SECInterpreter@SEC.gov at least three business days in advance. For any other reasonable accommodation related disability contact DisabilityProgramOfficer or call 202-551-4158.
Open Meeting - Monday, May 24, 2010 - 9:00 a.m.
The Joint CFTC-SEC Advisory Committee on Emerging Regulatory Issues will hold an Open Meeting on Monday, May 24, 2010, at 9:00 a.m. The meeting is open to the public, with seating on a first-come, first-served basis. Doors will open at 8:30 a.m. Visitors will be subject to security checks. This Sunshine Act notice is being issued because a majority of the Commission may attend the meeting.
The agenda for the meeting includes: (i) opening remarks; (ii) the introduction of Committee members, (iii) discussion of Committee agenda and organization; (iv) discussion of the Joint CFTC-SEC report on the market events of May 6, 2010; and (v) discussion of next steps and closing comments.
For further information, please contact the Office of the Secretary at (202) 551-5400.
In the Matter of Jeffrey A. Richardson
On May 17, 2010, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings and Imposing Remedial Sanctions (Order) against Jeffrey A. Richardson, based upon the entry of a permanent injunction against him in SEC v. Sierra Brokerage Services, Inc., et al., Civil Action No. 2:03-CV-326 (S.D. Ohio).
The Commission's complaint alleged that Richardson participated with others in a scheme to manipulate the price of BluePoint Linux Software Corporation (BluePoint) shares. The Complaint alleged Richardson, as head trader, authorized all trades made at Sierra during all relevant times. The Complaint alleged Richardson worked in concert with Sierra and others to create artificial trading activity and to manipulate the share price of BluePoint from $6 to a high price of $21 on the first day that BluePoint shares were traded. The Complaint alleged Richardson aided and abetted Sierra's price leadership and domination of other market makers by leading the bid and raising the bid throughout the first day of trading even though it had no legitimate reason to do so. The Complaint also alleged that Richardson and others offered to sell shares in BluePoint without a registration statement in effect.
Based on the above, the Order bars Richardson from association with any broker or dealer. Richardson consented to the issuance of the Order without admitting or denying any of the findings in the Order except for the entry of the permanent injunction against him, which he admitted. (Rel. 34-62113; File No. 3-13903).
In the Matter of Lorenzo Altadonna
On May 18, 2010, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions (Order) against Lorenzo Altadonna (Altadonna). The Order finds that from October 2002 to April 2007, and from July 2007 to January 2008, Altadonna was a registered representative associated with a series of broker-dealers registered with the Commission. The Order further finds that on Jan. 25, 2008, Altadonna terminated his association with the last in that series of registered broker-dealers and since that time has not been a registered representative associated with any broker-dealer. The Order also finds that on March 11, 2010, a final judgment was entered by consent against Altadonna that permanently enjoined him from future violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 (Securities Act) and Sections 10(b) and 15(a) of the Exchange Act and Rule 10b-5 thereunder, in the civil action entitled Securities and Exchange Commission v. Watermark Financial Services Group, Inc., et al., Civil Action Number 08-CV-361, in the United States District Court for the Western District of New York.
According to the Order, the Commission's amended complaint alleges, among other things, that from at least May 2005 to May 2008, Altadonna and others solicited approximately 90 investors, a number of whom are senior citizens, to invest at least $5.1 million in "convertible debentures" by falsely stating to investors that their funds would be used to purchase or develop real estate and that their investments were guaranteed. The amended complaint further alleges that, from April to June 2007, and after January 2008, Altadonna sold the debentures when he was not registered as a broker or dealer and was not an associated person acting under the supervision of a registered broker or dealer. The amended complaint also alleges that the debentures offering was not registered with the Commission at any time.
Based on the above, the Order bars Altadonna from association with any broker or dealer. Altadonna consented to the issuance of the Order without admitting or denying any of the findings in the Order, except he admitted the entry of the injunction. (Rel. 34-62116; File No. 3-13904)
SEC Obtains Consent Order and Judgment as to Defendant Anil Kumar
The SEC announced that, on May 17, 2010, The Honorable Jed S. Rakoff, United States District Judge, United States District Court for the Southern District of New York, entered a Consent Order and Judgment as to Defendant Anil Kumar (Kumar) in the SEC's insider trading case, SEC v. Galleon Management, LP, et al., 09-CV-8811 (S.D.N.Y.) (JSR), filed on Oct.16, 2009, against Raj Rajaratnam (Rajaratnam), Galleon Management, LP (Galleon), Kumar, and others. Rajaratnam is the founder and a Managing General Partner of Galleon, a New York hedge fund, which at the time of the alleged insider trading had billions of dollars under management. When the SEC's complaint was filed, Kumar, a friend of Rajaratnam's and a Galleon investor, was a director at the global consulting firm McKinsey & Co. (McKinsey). The SEC alleged that Rajaratnam unlawfully traded based on inside information involving numerous companies. It further alleged that Kumar acquired material non-public information while working as a McKinsey consultant and passed that information to Rajaratnam, who traded on it. The SEC charged Rajaratnam and Kumar with violations of Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder, and Section 17(a) of the Securities Act of 1933 (Securities Act).
The Consent Order and Judgment entered against Kumar permanently enjoins him from violating the antifraud provisions of the federal securities laws, Section 10(b) of the Exchange Act, Exchange Act Rule 10b-5, and Section 17(a) of the Securities Act. It also orders him to pay disgorgement in the amount of $2.6 million, plus prejudgment interest in the amount of $190,621, for a total of $2,790,621. The order provides that the Court will determine at a later date whether any civil penalty is appropriate. Kumar has agreed to cooperate with the SEC in connection with this action and related investigations. [SEC v. Galleon Management, LP, et al., Civil Action No. 09-CV-8811 (SDNY) (JSR)] (LR-21526)
INVESTMENT COMPANY ACT RELEASES
Calvert Social Investment Fund, et al.
An order has been issued on an application filed by Calvert Social Investment Fund, et al., under Section 6(c) of the Investment Company Act for an exemption from Rule 12d1-2(a) under the Act. The order permits funds of funds relying on Rule 12d1-2 under the Act to invest in certain financial instruments. (Rel. IC-29268 - May 17)
Pax World Funds Trust II, et al.
An order has been issued on an application filed by Pax World Funds Trust II, et al. The order amends a prior order that permits: (a) certain open-end management investment companies and their series that are based on equity securities indices to issue shares that can be redeemed only in large aggregations; (b) secondary market transactions in shares to occur at negotiated prices; (c) certain affiliated persons of the series to deposit securities into, and receive securities from, the series in connection with the purchase and redemption of large aggregations of shares; (d) under specified limited circumstances, certain series to pay redemption proceeds more than seven days after the tender of shares; and (e) certain registered management investment companies and unit investment trusts outside of the same group of investment companies as the series to acquire shares of the series. The amended order permits the investment company applicant to offer a new series that is based on an equity securities index for which the entity that may be deemed an index provider also may be deemed an affiliated person of an affiliated person of the investment company applicant. (Rel. IC-29269 - May 17)
Immediate Effectiveness of Proposed Rule Changes
A proposed rule change filed by BATS Exchange to amend BATS Rule 11.9, entitled "Orders and Modifiers" (SR-BATS-2010-011) has become effective under Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of May 17. (Rel. 34-62102)
A proposed rule change (SR-Phlx-2010-71) filed by NASDAQ OMX PHLX relating to professional routing fees has become effective pursuant to Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of May 17. (Rel. 34-62105)
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